Press Release: Saab delays wages for white-collar employees
July 26, 2011 in News
Zeewolde, The Netherlands, 26 July 2011 – Swedish Automobile N.V. (Swan) announces that Saab Automobile AB (Saab Automobile) has delayed payment of the wages to its white-collar employees as some of the funds that were committed by investors were not paid in time to effect such salary payments. Saab Automobile is taking all necessary actions to collect these funds and continues discussions with various parties to obtain additional short-term funding so that the payments can be made.
Swan will update the market of any new developments.
Obviously, this is bad news but given the day to day liquidity issues at Saab that we’re well familiar with, this isn’t necessarily huge news. I’m not trying to downplay this move, but it’s seems less severe than the last wage delay, and it shows that the executives are taking responsibility and the hardest hit first. The news that Youngman, Pang Da, and Saab will be meeting this week to inject new liquidity into Saab (covered in the next article) is welcome news which we all hope pans out. The second to last sentence of the press release seems to confirm that.
SVX92 said on July 27, 2011
I would just like to state that the emotional fortitude and dedication of employees like Anders and Steven (swade) are human capital that comprise the greatest assets of a company.
As a Human Resource guy, I hope I never forget that the talents and loyalty and dedicated pride of a company’s employees are the foundation of a brand.
I love my job and although my work can be difficult, frustrating or mentally weighing and often involves providing employees with answers that aren’t the answers they wish to hear, I enjoy getting up each day and driving to work. I value the company and it’s culture. Anders and Steven, despite the frustrations with media and those “armchair” journalists who feel qualified to dictate SAAB would be business strategies based on gleaning news stories as a company outsider, and posting their opinions with disdain, I hope you continue to find mental reward in the scope and quality of work that you perform. This type of heart and mettle is what makes SAAB special to me. I see cars not as an appliance or device to get me from A to B. Rather it is a physical manifestation of what is a passionate purchase for me. SAAB is that emotional choice for me. SAAB is sexy, SAAB is safety, SAAB is smart. I’d place a deposit today on the next generation 9-3 convertible. ( lol I like the wind on my balding head). I look forward to the future. Thank you and those like you for your plucky determination and dedication. You are the future of the brand. With 9-5s and 9-4xs at dealers now, the present of the brand is solid product.
Sincerel-Derek M.
saabyurk said on July 27, 2011
Probably the best comment I’ve read all day.
SVX92 said on July 27, 2011
Thank you. I’m actually headed back to work at 11pm tonight. It is an employee appreciation night for our seasonal summer employees across our resorts and entertainment businesses. We have management volunteers who will operate a portion of our amusement park tonight after closing for a couple of hours. I think I will relish in the drive to Hershey in the Saab tonight.
coggs said on July 27, 2011
I wish the SU Crew would close the comments on that excellent post. Go out on a high note!
Jeff said on July 27, 2011
Agreed, Coggs. As soon as I get the next post up, I’m closing them on this post. Just eating dinner and getting some work done first
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TimR said on July 27, 2011
Wow, I have been away all day at work and the comments on this post is like nothing I have seen before. My good friends in the crew have done a great job by having a lot of patience. Some people went too far in expressing their opinons and that has been taken care of.
I have always said that I will try as much as I can to respect peoples opinions and people have the right to express them as long as they follow the terms that governs this website. I wish and hope that every one will do this in the future regardless if what they have to say about the situation is good or bad.
I myself is now faced in a position where I will have to support my family financially since a big part of the income comes from Saab. I feel fortunate that I have a job that pay enough for me to do that, but my thoughts go out to all who do not. SaabsUnited have collected a pretty big fund to help employees, but this is to be considered a last resort and we will use it when needed! I am sure that the management of Saab will solve the salary situation before these funds needs to be used.
Right now I’m totally in the mode of wait and see what will happen. We will keep a close eye on what is going on and I think its now more than ever that we need to come together as a community to support our brand…
CJ said on July 27, 2011
Tim:
Good post. These are indeed trying times.
To my friends, you are very much in our thoughts, and now prayers.
Keep the faith and hang in there.
CJ
davidgmills said on July 27, 2011
Twirix represents the Ayn Randian, very popular (unfortunately), libertarian point of view that governments should just stay out of everything. That the free market will take care of everything and that only the strong should survive. And, that the taxpayers should not be responsible for hardly anything. The problem with that philosophy is that it only works if the rest of the world’s governments do the same. When some governments help out their industries and others don’t, those that don’t get help from their governments are going to have a hard time competing in the world and will probably fail.
If Saab goes under, it will be because the workers at Saab and investors in Saab needed help from the Swedish government and they didn’t get it. Sometimes governments have to help the workers and employees of companies by making it impossible for the owners of companies to take the company, or the company’s production to some other country. Sometimes governments need to recognize that jobs are more important than budget deficits.
The Swedish government could fix Saab’s problem in a heartbeat. It is sad that the Swedish government won’t. It could have done the same for Volvo. If two car companies were impractical it could have merged the two.
Unfortunately Saab and Volvo are just a microcosm for what is happening all over the world and the same thing has happened with great regularity in the US.
If the Swedes lose their auto industry, this will have so many repercussions for their people.
Even though I don’t want a GM car, I am very thankful the US government came in and bailed GM out. Perhaps the government finally realized it had let too many industries fail. The bailout has saved thousands of our jobs and frankly, the cars GM is putting out right now are very good. I think the quality of the GM cars and their much lower prices have really hurt Saab in the US.
Sweden could have done the same thing for its workers. If Saab fails the Swedish people will one day regret not having this automotive brand and its jobs. Too bad they can’t see it now.
scand said on July 27, 2011
Looking from the other side for a moment…. Let’s say you were the Swedish government, and you were faced with the decision of saving…or not.. a company, iconic as it may be, but loss making for the last 20 years, that industry experts tell you is too small to compete profitably, then what do you do? Do you in effect nationalize it? What do you do when it runs out of money again? Give them more.. And more.. Then do Volvo ask for similar handouts ?
Sweden used to have a large shipbuilding industry, the remnants are a large crane in a dry dock in Gothenburg – now a hotel complex. The point I’m trying to make, is there is life beyond the sunset of a particular industry. Trying to preserve them artificially isn’t good for the greater good of the country in the long run.
Sweden has given some seed money to help Saab get off the ground, at this point it’s up to the companies owners to adequately finance it. If they can’t, then they should sell it, bankrupt it, or close it.
To carry on like this is simply draining the life out of it minute by minute.
Sweden did give backing
Peter Gilbert said on July 27, 2011
At Least Saab Management knows what has to be done because I believe they are really competent. We are dealing with inept bureaucracy. When I see what is going on now in Washington with our CEO. Our brave soldiers, seniors and even myself may not get a paycheck in August!
We all need to take a breath and keep the faith. I know my elder British Saab Brothers remember the Battle of Britain and hanging on for six years of tenacity. We must have patience, resolve and fortitude to get through this abyss. “That if Saab lasts for a thousand years, then this is our finest hour!”
Winston S. Churchill
SAAB LANCE said on July 27, 2011
There is NO way Saab can revive itself in the U.S. Market.The lapse has been too protracted.I do not know of anyone I speak to that does not think Saab is currently already out of business.The Pa.Dealers rarely if ever advertise any longer.I lived and worked in the Philadelphia area for the last 26 years,16 of them in Saab sales at one of the top 30 dealers in the country.The Philadelphia Inquirer has not had a Saab ad in months.The 9-4x is too little too late in a market FLOODED with X-over vehicles.Will some be bought? …of course.Will the number even show up on the U.S. auto sales radar? It is irrelevant and the sales numbers will attest to it.Sorry guys the view from the North East U.S is beyond bleak.